Bitcoin gives back its run at $85,000 as Tesla and Meta fail to calm AI nerves
Bitcoin retreated from its recent peak near $85,000 as broader market sentiment soured following disappointing earnings reports from Tesla and Lam Research. While Meta's AI spending plans provided a slight boost, global markets remained pressured by tech sector volatility and economic concerns in Asia.
Why it matters
The correlation between Bitcoin and traditional tech stocks highlights how macroeconomic factors and AI-sector performance continue to dictate crypto market volatility, challenging the asset's independence.
ZEC was the only standout gainer among the majors, up nearly 3% to about $1,290, and XRP added less than 1%. HYPE was the laggard, down 3% to about $79. DOGE fell 2% and SOL lost about 1%, while ether, BNB and TRX slipped less than 1%, according to CoinDesk data.
The breakout didn’t last long. Bitcoin cleared $84,000, the ceiling that turned it back on Oct. 13 and 14, and topped out near $84,800 late Wednesday. Within about six hours it had dropped more than $2,000 to around $82,600, a rough night for anyone who chased the move.
That leaves bitcoin sitting on $82,500, a level that some market watchers warn could open a slide toward $70,000 if it breaks for good.
Big Tech didn’t help. Tesla fell 3% after hours after it cut its capital-spending forecast, and chip-equipment maker Lam Research dropped 7% on a weak outlook.
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